Agostino Ricupati Takes A Bullish Stance, Acquiring $1.75M Worth Of Cooper Companies Stock Options

A notable acquisition unfolded on March 20, as Ricupati, SVP & CAO at Cooper Companies COO, reported the acquisition of stock options for 54,724 shares in an SEC filing.

What Happened: Revealed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Ricupati, SVP & CAO at Cooper Companies, strategically acquired stock options for 54,724 shares of COO. These options empower Ricupati to buy the company's stock at a favorable exercise price of $69.74 per share.

Currently, Cooper Companies shares are trading down 0.0%, priced at $101.66 during Thursday's morning. This values Ricupati's 54,724 shares at $1,746,924.

About Cooper Companies

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical. CooperVision is a pure-play contact lens business and is composed of a suite of spherical, multifocal, and toric contact lenses. The company also has one of the most comprehensive specialty lens portfolios in the world. With brands including Proclear, Biofinity, MyDay, and clariti, Cooper controls roughly a quarter of the U.S. contact lens market. CooperSurgical, founded in 1990, is made up of equipment related to reproductive care, fertility, and women's care. Cooper has the broadest medical device coverage of the entire IVF cycle. It also has Paragard, the only hormone-free IUD in the U.S., and controls 17% of the U.S. IUD market.

Understanding the Numbers: Cooper Companies's Finances

Revenue Growth: Over the 3 months period, Cooper Companies showcased positive performance, achieving a revenue growth rate of 8.51% as of 31 January, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 66.96%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Cooper Companies's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.41.

Debt Management: Cooper Companies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.36, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 69.76, Cooper Companies's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.53 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Cooper Companies's EV/EBITDA ratio, surpassing industry averages at 25.54, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Uncovering the Importance of Insider Activity

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Cooper Companies's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.